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Stock market news live updates: Stocks end Friday with modest gains and weekly losses

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U.S. stocks advanced Friday after a shaky trading week marked by mixed retail earnings and a chorus of hawkish Fedspeak.

The S&P 500 (^GSPC) rose 0.5%, while the Dow Jones Industrial Average (^DJI) bounced 200 points, or 0.6%. The technology-heavy Nasdaq Composite (^IXIC) was flat. Treasury yields continued their ascent, with the benchmark 10-year note back above 3.8% and the rate-sensitive 2-year yield inching toward 4.5%.

An assembly of Fed officials on Thursday pushed back against speculation that a pause on monetary tightening is close. The remarks made in separate speaking engagements across the country sent stocks and bonds into disarray after a fleeting uptrend propelled by lighter inflation data.

Inflation has only recently shown signs of moderation, with consumer and producer price data still stubbornly high despite retreating in October. Meanwhile, U.S. retail sales rose at the fastest clip in eight months over the same period, prompting policymakers to hammer down on strict messaging about the work still needed to be done to tamp down elevated costs.

Minneapolis Federal Reserve Bank President Neel Kashkari said in a Minnesota Chamber of Commerce event webcast that the extent policymakers expect to raise their key federal funds rate remains an “open question.” His comments came after St. Louis Fed President James Bullard and ​​San Francisco Fed President Mary Daly each said the central bank is looking at a terminal rate of up to 5.25%.

President and CEO of the Federal Reserve Bank of St. Louis James Bullard speaks at the Foreign Correspondents' Club on the US economy and monetary policy in Hong Kong on May 22, 2019. (Photo by Isaac LAWRENCE / AFP) (Photo credit should read ISAAC LAWRENCE/AFP via Getty Images)President and CEO of the Federal Reserve Bank of St. Louis James Bullard speaks at the Foreign Correspondents' Club on the US economy and monetary policy in Hong Kong on May 22, 2019. (Photo by Isaac LAWRENCE / AFP) (Photo credit should read ISAAC LAWRENCE/AFP via Getty Images)
President and CEO of the Federal Reserve Bank of St. Louis James Bullard. (ISAAC LAWRENCE/AFP via Getty Images)

“Fed Chair Powell recalibrated monetary policy at the November FOMC meeting by adopting a new ‘speed vs. destination’ paradigm – indicating an intention to reach a higher terminal fed funds rate while doing so at a slower pace,” EY Parthenon Chief Economist Gregory Daco said in a note. “The difficulty for the Fed will be to prevent an excessive and counter-productive loosening of financial conditions in the face of weaker-than-expected inflation.”

Goldman Sachs Group on Thursday also lifted its forecast for the Federal Reserve’s terminal rate to a range of 5% to 5.25%, tacking another 25-basis-point hike in May after increases of that size in February and March, and half a percentage point in December.

“Inflation is likely to remain uncomfortably high for a while, and this could put pressure on the FOMC to deliver a longer string of small hikes next year,” economists led by Jan Hatzius also said.

In the shadow of renewed rate jitters, Gap (GPS), Ross Stores (ROST), and Williams-Sonoma (WSM) rounded out a busy week of retail earnings.

Shares of Gap jumped 7% Friday after the company unveiled results that topped Wall Street estimates. Chief Financial Officer Katrina O’Connell, however, emphasized the macroeconomic environment remains challenging, but that Gap will take a “prudent approach in light of the uncertain consumer.”

Ross Stores shares rallied 10% after the retail chain beat on earnings forecasts and lifted its fourth-quarter guidance, citing sales momentum and improved assortments for the holidays.

Meanwhile, shares of home furnishings store Williams Sonoma sank 6% after it pulled its guidance through 2024 over “macro uncertainty.”

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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Netflix’s subscriber growth slows as gains from password-sharing crackdown subside

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Netflix on Thursday reported that its subscriber growth slowed dramatically during the summer, a sign the huge gains from the video-streaming service’s crackdown on freeloading viewers is tapering off.

The 5.1 million subscribers that Netflix added during the July-September period represented a 42% decline from the total gained during the same time last year. Even so, the company’s revenue and profit rose at a faster pace than analysts had projected, according to FactSet Research.

Netflix ended September with 282.7 million worldwide subscribers — far more than any other streaming service.

The Los Gatos, California, company earned $2.36 billion, or $5.40 per share, a 41% increase from the same time last year. Revenue climbed 15% from a year ago to $9.82 billion. Netflix management predicted the company’s revenue will rise at the same 15% year-over-year pace during the October-December period, slightly than better than analysts have been expecting.

The strong financial performance in the past quarter coupled with the upbeat forecast eclipsed any worries about slowing subscriber growth. Netflix’s stock price surged nearly 4% in extended trading after the numbers came out, building upon a more than 40% increase in the company’s shares so far this year.

The past quarter’s subscriber gains were the lowest posted in any three-month period since the beginning of last year. That drop-off indicates Netflix is shifting to a new phase after reaping the benefits from a ban on the once-rampant practice of sharing account passwords that enabled an estimated 100 million people watch its popular service without paying for it.

The crackdown, triggered by a rare loss of subscribers coming out of the pandemic in 2022, helped Netflix add 57 million subscribers from June 2022 through this June — an average of more than 7 million per quarter, while many of its industry rivals have been struggling as households curbed their discretionary spending.

Netflix’s gains also were propelled by a low-priced version of its service that included commercials for the first time in its history. The company still is only getting a small fraction of its revenue from the 2-year-old advertising push, but Netflix is intensifying its focus on that segment of its business to help boost its profits.

In a letter to shareholder, Netflix reiterated previous cautionary notes about its expansion into advertising, though the low-priced option including commercials has become its fastest growing segment.

“We have much more work to do improving our offering for advertisers, which will be a priority over the next few years,” Netflix management wrote in the letter.

As part of its evolution, Netflix has been increasingly supplementing its lineup of scripted TV series and movies with live programming, such as a Labor Day spectacle featuring renowned glutton Joey Chestnut setting a world record for gorging on hot dogs in a showdown with his longtime nemesis Takeru Kobayashi.

Netflix will be trying to attract more viewer during the current quarter with a Nov. 15 fight pitting former heavyweight champion Mike Tyson against Jake Paul, a YouTube sensation turned boxer, and two National Football League games on Christmas Day.

The Canadian Press. All rights reserved.

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All Magic Spells (TM) : Top Converting Magic Spell eCommerce Store

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